A Provocation That Has Left Many in the Dark
U.S. president-elect Donald Trump has escalated his remarks about making Canada part of the U.S. during a press conference at his Mar-a-Lago resort in Florida on Tuesday. He reiterated that he intends to put "substantial" tariffs on goods from Canada and Mexico.
Economic Force: A New Strategy?
When asked if he would use military force to annex Canada, Trump replied, "No — economic force. Because Canada and the United States, that would really be something. You get rid of that artificially-drawn line and you take a look at what that looks like, and it would also be much better for national security — don’t forget, we basically protect Canada."
A Reaction from Prime Minister Justin Trudeau
Trump’s latest provocation prompted Prime Minister Justin Trudeau to respond on X: "There isn’t a snowball’s chance in hell that Canada would become part of the United States. Workers and communities in both our countries benefit from being each other’s biggest trading and security partner." More than 80 per cent of Canadians are opposed to the idea, according to a recent poll.
The U.S. Trade Deficit: A Major Concern
The total U.S. trade deficit in goods and services with Canada was US$40.6 billion in 2023, according to U.S. Census Bureau data. It’s driven by energy exports: the U.S. buys more than four million barrels a day of Canadian crude oil.
Potential Responses from Ottawa
In response to threats from Trump of 25 per cent tariffs, officials in Ottawa have been examining the use of export taxes on items such as uranium, oil, and potash as potential responses in case there’s a trade war, Bloomberg News reported last month.
The Impact on the Canadian Economy
Canada is the largest external supplier of oil to the U.S., its uranium is the biggest foreign source of fuel for U.S. nuclear power plants, and its potash is a huge source of fertilizer for American farms. The Canadian dollar has dropped versus the greenback since Trump made a threat on Nov. 25 to put the tariffs on Canada and Mexico.
A New Era in Canadian Politics?
Trudeau announced his resignation on Monday, saying he doesn’t have enough support from within his Liberal Party to lead it into an election this year. Foreign Minister Melanie Joly posted on social media that Canada "will never back down in the face of threats." She’s considered a potential contender to succeed Trudeau.
The Conservative Party’s Response
Conservative Party Leader Pierre Poilievre, whom polls say is the odds-on favourite to win the upcoming election, has said Canada would "never" be a U.S. state. A representative for Poilievre didn’t reply to a request for comment.
Trump’s Reaction to Poilievre’s Comments
Asked about those comments on Tuesday, Trump said: "Then maybe he won’t win. But maybe he will. Listen, I don’t care what he says."
The Uncertainty Ahead
With the Canadian election looming and the U.S. trade deficit a major concern, it remains to be seen how this situation will unfold. Will Canada be annexed by the United States? Only time will tell.
Recommended Reading
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- American exceptionalism is not all its cracked up to be
Share Your Thoughts
What do you think about Trump’s comments on making Canada part of the U.S.? Share your thoughts in the comments section below.
